More Canadians choosing imported wine over beer: Report suggests

The taste for beer in this country has been waning over the past decade, as more people choose to buy imported wine, a report released Monday suggests.

Beer and liquor store agencies sold $20.3 billion worth of beer during the fiscal year ending March 31, 2011, up two per cent from the previous year, according to the Statistics Canada data.

While beer remains the "alcoholic drink of choice," for Canadians, it is being challenged by increasing wine sales: By 2011, the market share for beer had declined to 45 per cent from 52 per cent in 2000.

Beer sales amounted to 80.3 litres per person in 2011 on a per-capita basis, down from 85.6 litres in the past decade. Per capita data are based on Canadians age 15 and older.

During the same period, the dollar value of beer sales increased by about $47 to $320 per person.

The volume of imported beer was down 2.4 per cent to 321 million litres in 2011 compared to the previous year. Yet imported beer sales continue to be up: imported beer represented 14 per cent of Canada's beer market, double its share of seven per cent a decade ago.

Imported beer sales were from the United States, (23.4 per cent), Netherlands (18.7) and Mexico (18.5).

Meanwhile, market share for wine accounted for 30 per cent by 2011 from 23 per cent the previous decade.

Wineries and liquor stores and their agencies sold $6.1 billion worth of wines during the fiscal year ending March 31, 2011, up five per cent from the previous year.

The volume of wine sales increased three per cent to 470 million litres during the same period, with imported wine sales growth (4.8 per cent) surpassing domestic wine sales growth (0.5 per cent).

From 2000 to 2011, the dollar sales of red wine almost tripled, up by an astonishing 181 per cent, while dollar sales increased at a slower pace at 66 per cent.

Imported red wine was unchanged at 76 per cent of all red wines sold in Canada, while the share of imported white wine increased from 61 per cent to 62 per cent.

Liquor stores and agencies sold $5.1 billion worth of spirits in the same fiscal year, up 2.9 per cent from the previous year. It was attributed to increase in sales of vodka (five per cent), rum (4.1 per cent) and whisky (2.7 per cent).

During the same period, the volume of spirits sold increased 0.2 per cent to 209.8 million litres.

The report also noted that while domestic spirits continued to dominate the Canadian market, their lead has been declining: the volume of imported spirits increased to 34 per cent in 2011 from 26 per cent of all spirits in 2000.

According to the study, alcohol's overall growth in dollar value was due to several factors, including an increase in sales of imported wine and spirits and a 0.4 per cent increase in the price of spirits, wines and beer during the fiscal year ending March 2011.

During the same period, the volume of sales of alcoholic beverages decreased 0.5 per cent to 228.4 million litres of alcohol, it reported.

The net income of provincial and territorial liquor authorities increased 5.6 per cent to $5.9 billion in 2011 compared to the previous year.

With the exception of Alberta, all of the provinces and territories experienced growth in sales. Alberta reported a 4.5 per cent decline in net alcohol sales income.

The report, however, noted that sales of alcohol should not be equated with data on consumption. Also, it said sales of alcoholic beverages should not be equated with consumer spending on alcohol.

Since sales data refer to revenues by liquor authorities, wineries and breweries, and from bars and restaurants, the report said sales don't reflect the total amount spent by consumers on alcohol "since the prices paid in licensed establishments are greater than the price paid by those establishments to the liquor authorities."

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